"We're on a schedule, like all member towns of Middlesex (County Retirement System), to extinguish the liability by 2035," said John Sousa, the town's finance director.

As part of statewide pension reforms, municipal employees pay into the system slightly more than they did decades ago. A municipal worker hired before 1975, for instance, would contribute only 5 percent. Today, a worker pays 9 percent, plus an additional 2 percent for pay above $30,000.

But it's still not enough to drive down pension costs for Massachusetts cities and towns.

Pension benefits are guaranteed, so if the Middlesex County Retirement System experiences a drop in investments -- and it lost $109 million in the two-year period ending 2011, its most recent reporting period -- taxpayers are tabbed to cover the loss.

Advertisement

Employee contributions have also fallen as the number of active participants has dropped 3 percent during the last decade.

The fiscal 2014 payment for Chelmsford is $6,092,089, an increase of 3.1 percent in one year. Next year's increase is projected to be around 5 percent, Town Manager Paul Cohen said.

Funds dedicated to pension liabilities do take away from other areas that could use the money, he said.

"It's certainly limiting the town's ability to provide a desired level of services," Cohen said, mentioning other personnel-related costs such as employee health care, and insurance and health-care benefits for retirees. "It has an impact. It clearly does."

The town is meeting its requirements to fund the liability in accordance with state law, he said.

The Finance Committee chairwoman, Patrice Garvin, said more discussion is generally given during committee meetings to capital requests or spending plans such as the turf athletic fields proposal that passed this spring, than to the town's pension liabilities.

"I don't think it's a burden because it's a benefit to retain qualified, capable and competent people," she said, adding later, "I think the town does a great job in managing its liabilities, and it's been proactive.

Some former workers are receiving annual pensions of close to six figures or more in retirement.

The highest, former Fire Chief John Parow, takes home $103,380 each year, according to public records. Raymond McCusker, a former police chief, is the second highest at $93,797. They are among 26 former municipal workers receiving annual pension payments in excess of $50,000.

On the school side, there are 107 retirees receiving pensions of $50,000 or more, topped by former Superintendent Richard Moser's $98,430 annual pension. Karen Mazza, a former assistant superintendent, is next with a $92,788 pension.

In addition to the more than $6 million that goes toward municipal and some school workers, more than twice as much goes toward teachers and other administrators.

Another $14 million goes toward paying about 400 teachers, principals and some administrators -- but that cost is borne by all Massachusetts taxpayers as part of the Massachusetts Teachers' Retirement System.

Teachers and those who pay into the Massachusetts Teachers' Retirement System -- which also includes superintendents, other administrators and principals -- contribute 11 percent into their pension plan. Like with municipal workers, that is also more than they used to pay before 2001, when they contributed between 5 percent and 9 percent, varying amounts that increased as time went along.

"It's a misnomer to say we don't pay into it," School Business manager Kathy McWilliams said.

The liability for the Massachusetts Teachers' Retirement System does not come from local school districts. Instead, taxpayers across Massachusetts cover the system's cost. The program, which has 105 contributing school districts, covers retirement, disability and survivor benefits for 88,000 current employees and 59,000 retirees.

Many school workers, including those in food service or paraprofessionals, are covered in the town's pension plan, not the Massachusetts Teachers' Retirement System.

Top recipients and annual pensions

MUNICIPAL

Former Fire Chief John Parow -- $103,380

Former Police Chief Raymond McCusker -- $93,797

Former Fire Capt. Rick Rivard -- $71,569

Former Deputy Police Chief Francis Roark -- $70,984

Former Deputy Fire Chief James Sousa -- $70,747

SCHOOL

Former Superintendent Richard Moser -- $98,420

Former Assistant Superintendent Karen Mazza -- $92,788

Former High School Principal Weldon Allen Thomas Jr. -- $83,537

Former Parker Middle School Principal Denise Rainis -- $83,352

Former Curriculum Coordinator Donna Hussey -- $78,491

Chelmsford's total pension liability: $79,480,348

Fiscal 2014 payment: $6,092,089

Of this year's payment, amount that pays this year's benefits: $1,245,149

Welcome to your discussion forum: Sign in with a Disqus account or your social networking account for your comment to be posted immediately, provided it meets the guidelines. (READ HOW.)
Comments made here are the sole responsibility of the person posting them; these comments do not reflect the opinion of The Sun. So keep it civil.